Trade Recommendation: Zilliqa
Zilliqa (ZIL/USD) is a market that’s still trapped in range accumulation. However, that may not be the case for long. The cryptocurrency is showing bullish signals. It is time that we take notice and prepare for the eventual breakout.
Technical analysis shows that ZIL/USD is painting a large double bottom pattern on the daily chart. This structure has been in construction for about seven months now. That’s a long time to build a base in the cryptocurrency world. Keep in mind, the higher the base, the higher the space.
Also, recent price action tells us that Zilliqa is gearing for a strong breakout. On June 1, 2019, the market crashed to the bottom of the range at $0.013. Fortunately, bulls responded to the crisis and bought the massive dip. ZIL/USD closed the day at $0.019551. The price action created a long wick below the daily candle’s body to indicate the rejection of lower prices.
In addition, the 50-day moving average (MA) is about to cross above the 100-day MA. This pending golden cross is a strong buy signal as it indicates that the market is turning bullish. With this cross, our three MAs will be in ideal bullish alignment. The 50-day MA will be above the 100-day MA and the 100-day MA will be on top of the 200-day MA. This setup would indicate that the market’s bullish trend is healthy.
The strategy is to buy on the breakout and retest of $0.029 as support. As long as the market is above this price, bulls will likely gather the momentum to hit our target of $0.045.
The process may take a month.
Daily Chart of Zilliqa/US Dollar on Bitfinex
Summary of Strategy
Buy: Breakout and retest of $0.029 as support.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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